5 Essential Home Insurance Tips for First-Time Buyers

Buying a home for the first time is one of the most crucial decisions in life. It involves hard work, dedication, and financial planning, and the decision offers you a sense of stability in life. A home becomes an asset that deserves to be protected in every aspect. For this purpose, homeowners need to embrace strategic financial discipline and a clear understanding of the process of obtaining Home insurance.

However, first-time buyers may have certain dilemmas about how to obtain the right type of Home insurance and how to leverage its benefits in the best possible way.  So, this blog is here to give first-time homebuyers some essential insurance tips.

Understanding Home Insurance in UAE

Home insurance is a policy to safeguard your house. Whether you own or rent it, you need to face risks such as fire, theft, natural disasters, etc. This type of insurance offers financial support, covering the repair and replacement costs when any mishap takes place with the insured home or the items inside it. While covering the building structure and whatever is inside it, the insurance also provides liability coverage. Thus, homeowners can stay safe from any third-party legal claim due to someone’s injury or damage to other properties.

5 Most Essential Home Insurance Tips for First-Time Buyers

Purchasing a home for the first time is a crucial step toward developing your investment portfolio. Getting the right Home insurance helps you protect your investment, ensuring a steady return on it. To help you understand the details of Home insurance, here are five important tips to remember.

Research and Compare Policies Before You Purchase:

Thorough research on the location of the property, Its age, and the condition of the building structure is important as these factors can impact the premium amount. Besides this, you should compare the details of different Home insurance policies at your reach from which you have to select the most suitable one covering your home’s needs under your budget.

Know about Exclusions and Add-on Options:

Every insurance policy comes with certain coverage gaps or exclusions. Home insurance is also no different. Not knowing about them beforehand may lead to misunderstanding at the time of claims. So, when you purchase your Home insurance policy, discuss with your insurance service provider what the policy covers and what is excluded from it. Additionally, get an idea about what add-on facilities are available to fill the coverage gaps.

Learn about the Claim Process beforehand:

Often, despite having a clear understanding of coverage limits and premium updates, homeowners fail to get the claims. The reason is not proceeding with the claim application process at the right time and in the appropriate way. So, understand the procedure properly at the time of purchasing the policy and take prompt action when any unwanted incident takes place.

Provide Accurate Information as Required:

Correct information about your home and the items inside it is valuable to obtain the right Home insurance policy. Mention every detail like the number of floors, accurate built-up area, furniture details, home decor and artifacts inside the home, etc. Besides these, provide other essential information as instructed by the insurer. Remember that, not providing the right information may lead to the rejection of claims or even cancellation of the policies.

Learn about Replacement Cost vs. Market Value:

The market value is the current price at which your home is supposed to be sold in the open market. And the replacement cost is the exact amount needed to replace the home with a new home with the same location, with the same dimensions of the house, and the same area per square. When your Home insurance is under market value, the received amount might not be sufficient to cover the loss or damage as the depreciation value of the house is taken under consideration. However, the insurance obtained under replacement cost covers the risks well.

About CoverB

As a one-stop destination for all types of insurance needs in the UAE, CoverB helps to obtain a wide range of insurance policies, including Home insurance. Any homeowner can obtain preferred insurance policies effortlessly with the help of CoverB experts. Besides this policy, CoverB guides people to purchase diverse insurance policies like health insurance, D&O liability insurance, etc, with customized coverage scopes.

Final Thoughts

When buying a home, there are many different stages involved, such as selecting the ideal property, preparing finances, conducting an inspection, and so on. During these phases, it’s important to remember to obtain Home insurance.